Ars Pharmaceuticals, Inc. (SPRY) has disclosed a new risk, in the Accounting & Financial Operations category.
Ars Pharmaceuticals, Inc. faces a significant business risk concerning its substantial accumulated net operating losses (NOLs). While federal losses incurred before 2018 may offset future income, they are subject to expiration, and post-2017 NOLs, though indefinite, are limited to 80% of taxable income. Furthermore, under Sections 382 and 383 of the Tax Code, an “ownership change” could further limit the use of these NOLs and other tax attributes. This scenario has been compounded by the Merger, which triggered an ownership change, potentially restricting the utility of NOL carryforwards and adversely impacting Ars Pharmaceuticals’ financial prospects.
The average SPRY stock price target is $18.50, implying 113.87% upside potential.
To learn more about Ars Pharmaceuticals, Inc.’s risk factors, click here.
